Franchise and Multi-Unit Businesses

KLF is regularly retained by franchisors and franchisees in the food and beverage, retail, and service sectors, as well as in other industries where multi-unit and franchise business models operate. We act on franchise transactions, advisory matters, and disputes.

KLF advises franchisors on their obligations under the Arthur Wishart Act (Franchise Disclosure), 2000, including the preparation and maintenance of compliant franchise disclosure documents. We act for franchisors in disputes with franchisees arising from terminations, non-renewals, transfer requests, territorial issues, and system standard enforcement. We also assist franchisors in transactions involving the purchase, sale, or restructuring of franchise systems.

KLF acts for franchisees and prospective franchisees seeking to understand their legal position before entering a franchise relationship and in disputes that arise during or at the conclusion of the franchise relationship. We advise franchisees on their rights under the Arthur Wishart Act, including the right of rescission where disclosure obligations have not been met. We act in franchise disputes involving misrepresentation, termination, and the duty of good faith and fair dealing.

KLF acts on the purchase and sale of individual franchise locations and, in appropriate circumstances, entire franchise systems. These transactions require attention to franchisor consent requirements, the allocation of liabilities between buyer and seller, disclosure obligations triggered by the transaction, and the regulatory and corporate steps required to complete the transfer.

Operators of multiple franchise locations face a range of legal issues arising from their size and complexity, including negotiating multi-unit development agreements, managing their relationship with the franchisor across a larger portfolio, and addressing location-specific disputes. KLF advises multi-unit operators on these matters.